I don’t know!
But I have some thoughts!
First, we are into the retracement zone that I mention in the webinar video below. Yesterday’s plunge just retraced the previous days rally.
Second, periods of high volatility are followed by periods of low volatility. That usually suggests that the market will stabilize and drift higher or lower.
Third, there is a Weekly Stochastic Divergence where the price of the market is making a new low but the stochastics on the weekly chart did not make a new low at the end of the week.
Fourth, I think that the Fed will come in with an even more bullish statement by next week. They are obsesses with the stock market and do not want to see the stock market moving lower in such a sharp manner.
Having said all that, we must respect the power of bear move. Such a powerful move will not turn around quickly. Only an announcement like the Fed easing more will turn the market around on a dime. Otherwise, I look for a bottoming process that will take a number of weeks. Given that bullish seasonals kick in October, that suggests that the bottoming process may take a couple of months.